Location Decisions for Businesses

Location is one of the most important things that businesses must decide on and we know already that location affects businesses. The way the customers will see the product and buy the product from will depend on the location. So, we have several factors that influence the location of the business.

 If we are choosing a location for the first time or if we’re trying to relocate a business and the thing that manufacturing and service businesses are not the same. So, of course, many things will differ. Especially, manufacturing businesses rely on infrastructure and facilities; roads, power supplies, water suppliers and all these things. So, they need to consider this before they locate or relocate. 

Factors affecting manufacturing businesses; I’m talking about businesses that produce goods of course Production method- for example job production businesses, they have less importance to be near components. So, if I am let’s say a dress designer, it’s not necessary to be near the supplier. But, if I’m using flow production, I need a huge amount of material to be there every day.So, that’s why I need to be near my suppliers. 

Market- If the product person is a percival product of course, I have to be near the market. The factor that I should consider as a manufacturing business; raw materials. I have to be as I said near the suppliers of raw materials I should consider this. I should consider external economies of scale. So, if you are near your suppliers, they will respond quickly to your breakdowns. It will be better of course. Maybe, this isan important thing for you. Maybe, I have to be near research departments; labor is important as well because I need to be in an area where Labor’s are available; skilled and unskilled.Remember I am a Manufacturing business.

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 Government influence- It is the grants or subsidies that might affect my decision to locate. 

Transport and communication– I have to be near roads. So, of course if I’m a factory, it’s common sense says that I should be near roads, railways and all these things. I cannot like locate in the middle of the desert for example. 

Power supply and water supply, the climate-They sometimes affect my decision in locating like thedry climate and Silicon Valley in the United States. Of course, it allows the production of silicon chips. So,  here that climate is a Plains at all and just remember it’s a manufacturing business. I’m considering all this because I’m a factory, I’m a manufacturing business. If I’m a service business, I provide service. The first thing I consider, our customers; because I have to have a direct contact with my customers because it’s a service right and personal preference of owners of course plays. Sometimes, they have a business where they live, where they locate. 

Technology also affects the business. If it’s a service business when they locate because technology allows some businesses to be far from customers. So, it’s not necessary for a web designer to be in the middle of the town. For example, I can have my office on the borders because there is no need to be exactly near the customers. For example, availability of labor’s,  there’s important climate as well. If you are a restaurant, if you are a service business, you cannot locate far away because you need to be in here.

Business rent and tax has played a big role in choosing the location of your business and remember there are a lot of let’s say costs on you as a business. So, one of them will be the fixed cost related to rent for example. So, sometimes you benefit from lore and traits especially if you don’t need to be and let’s say expensive variant the middle of the city or a middle of our town for example. Shoppers for retailing businesses as important retailing businesses like furniture shop, cloth shop or whatever of course you notice that all these shops are near the shoppers near us. Near other shops of course, they are not far away. You see them near a restaurant or near the famous.

There should be a customer parking and this is really important when considering the location. Just think about it, how many times you didn’t buy from an outlet or a place simply because they don’t have parking lot availability of suitable vacant premises of course related to rent and offices access for delivery is also important and should be taken into consideration. 

Security is important. Some areas are not safe. So, the location there is not suitable; the destinations and the laws that are passed by the government are also something important to consider.  

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